Around the globe, the utility industry faces waves of change brought on by a number of regional and global, public and private sector shifts. As the global initiative for a sustainable energy mix continues to take shape, utility companies that invest wisely stand to benefit from these industry changes.
Bain works alongside utility companies, at all levels of the organization, to evaluate the risks and opportunities inherent in new technologies and industry trends, such as renewable energy and power storage; and intelligent infrastructure, such as smart grids and smart metering.
Over the next 10 years, utilities around the world will make significant investments to renew their generating capacity and meet the growing demand for power. These decisions will require tough choices due to several boundary conditions: the pressure on the balance sheets of most utilities, a higher level of competition, increasing commodity prices, the financial constraints of governments that will limit the potential for subsidies, the evolving regulatory environment that will mandate reduced CO2 targets, and customers’ concerns about the environment and security of supply—and their increasing willingness to switch suppliers.
We work with our clients to prevent and remedy the financial pressure and pain points of these new realities, and help them create value through sustainable business development.
Companies that successfully increase revenue and profits tend to do so by developing their core businesses to their full potential and then pursuing disciplined expansion into attractive adjacencies. Electric vehicles, for example, open up a suite of opportunities for utility companies outside their immediate core. The question is: how to identify dependable, low-risk adjacencies with favorable economics to invest in? Bain can help.